The investigation relates to the Energy Company Obligation 4 (ECO4) scheme, which mandates energy companies to fund insulation and heating upgrades for poorer households. Parliament's Public Accounts Committee criticized the ECO4 scheme for being operated by several organizations without strong oversight. MPs in January called for the SFO to investigate the home insulation sector amid thousands of reports of poor work and financial costs.
The SFO is appealing for information on Warmfront (Staffordshire), JJ Crump (Sheffield), and South Coast Insulation Services (Hampshire) in connection with ECO4 projects from 2022 to 2024. Homes were searched in Cannock (Staffordshire), Wolverhampton, Chilworth (Hampshire), and Southwell (Nottinghamshire). Two commercial sites were searched at Cannock and Killamarsh (north-east Derbyshire). Warmfront was sold in 2024 and now trades under new management not connected to the investigation.
This scheme was designed to reduce carbon emissions, help households cut costs and stay warm – instead in many cases we suspect little or no work was done.
Graham McNulty, Director of the Serious Fraud Office, said: "This scheme was designed to reduce carbon emissions, help households cut costs and stay warm – instead in many cases we suspect little or no work was done." He added: "We are particularly keen to hear from installers and assessors who worked on these contracts and know what really happened. Our door is open, and coming forward is the right thing to do."
Solicitor General Ellie Reeves said: "This scheme was meant to tackle fuel poverty and improve people’s homes. I am sickened by those who want to profit off the back of a scheme designed to help vulnerable people, and I’m confident the SFO’s investigation into allegations of substantial fraud will deliver the answers victims and the public deserve." She described the alleged fraud as involving "companies that allegedly did little more than submit false invoices for work they failed to carry out."
We are particularly keen to hear from installers and assessors who worked on these contracts and know what really happened. Our door is open, and coming forward is the right thing to do.
The ECO4 scheme will end in December to be replaced by the Warm Homes Plan, which also funds solar panels and heat pumps. The names of the four arrested individuals have not been released, and it is unclear what specific evidence led to the arrests. The exact amount defrauded remains unconfirmed, as the £44m figure is an estimate. The SFO has not announced whether the individuals will be charged or provided a timeline for potential prosecution.
This scheme was meant to tackle fuel poverty and improve people’s homes. I am sickened by those who want to profit off the back of a scheme designed to help vulnerable people, and I’m confident the SFO’s investigation into allegations of substantial fraud will deliver the answers victims and the public deserve.
companies that allegedly did little more than submit false invoices for work they failed to carry out